FDI sector remains export pillar of Vietnam’s economy

The foreign direct investment (FDI) sector maintained its role as an export pillar of Vietnam’s economy with revenue of 43.2 billion USD in the first two months of this year, up 14.7 per cent, and accounting for 72.8 per cent of the country’s total export value.

Exports of items such as phones, computers, machinery, equipment, and garments-textiles experienced strong growth, ranging from 4.1 per cent to 33.9 per cent, Dau tu (Investment) Newspaper reported.

FDI sector remains export pillar of Vietnam’s economy | Business | Vietnam+ (VietnamPlus)
The FDI sector remains an export pillar of Vietnam’s economy. (Source: VNA)

Meanwhile, electronic products, garments-textiles, and footwear, among others, gave a boost to the import of materials in service of production, which saw a year-on-year rise of 18 per cent.

In the two months, Vietnam posted a trade surplus of 4.72 billion USD, with the FDI sector, including crude oil, recording a trade surplus of 8.25 billion USD.

Notably, the US imported 17.4 billion USD worth of goods from the Southeast Asian nation, a year-on-year increase of 33.7 per cent. Vietnam ran a trade surplus of 15.2 billion USD with the US, up 36.3 per cent from the same period last year.

Almost most purchased items were supplied by FDI firms, including computers, phones, electronics and components, machinery, equipment and spare parts, garments-textiles, and footwear.

Once fully tapped, the US market would offer over 100 billion USD in export revenue to Vietnam in 2025, said Trade Counsellor and head of the Vietnam Trade Office in the US Do Ngoc Hung.

Hung, however, noted that more trade barriers have been set up by the US to protect domestic production, and advised Vietnamese management agencies, businesses, and localities to stay updated on changes in politics and policies in the country to take timely response.

In January and February, Vietnam also shipped 7.7 billion USD worth of goods to the European Union (EU), a surge of 14.2 per cent year-on-year, and the rise is expected to continue in the time ahead thanks to the EU-Vietnam Free Trade Agreement (EVFTA).

After the deal came into force in August 2020, the two-way trade has experienced double-digit growth, as compared with a 5 per cent-7 per cent rise in Vietnam’s exports to the EU, and 3 per cent-5 per cent in imports in the previous period.

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(Source: VNA)